Hyderabad: The Enforcement Directorate (ED), Hyderabad, has summoned the wife of Vijayawada MP Kesineni Chinni in connection with the Andhra Pradesh liquor scam and asked her to appear on May 27. The summons relate to alleged links between PRYDE Infracon LLP and key accused Kessireddy Rajasekhara Reddy, alias Raj Reddy, in the case.ED sources said Janaki Lakshmi Kesineni, wife of the MP and a director in the firm, had earlier been summoned but did not appear before the agency, following which fresh summons were issued. The agency is probing alleged links between the company and the proceeds of crime in the liquor scam.Kesineni Chinni has denied any wrongdoing and said there was no connection between his family and the liquor scam. He said that PRYDE Infracon LLP, floated by his wife, was a Special Purpose Vehicle (SPV) set up in Dec 2021 at Jubilee Hills for the development of land in Gachibowli, Hyderabad.According to him, the land was purchased from another infrastructure company in Hyderabad, and the project was only a land partnership. He said his wife had been summoned earlier as she was a director in the company and had no personal involvement in the alleged liquor scam.“Our share in the land was only 400 square yards, while the others held about 4,000 square yards. We applied for permissions, but the project did not take off. It was stopped in 2022–23,” he said.Chinni added that the arrangement had initially begun following a dispute between neighbours over land, after which an agreement was reached. He maintained that there were no further transactions after 2022–23.He also said his wife had earlier responded to the ED summons and submitted the required information. “We have not yet received the latest summons,” he said.ED grills Raj Reddy, tracks money trailMeanwhile, the ED has questioned Raj Reddy for the past two days in connection with the Andhra Pradesh liquor scam probe. ED sources said the agency has also summoned the wife and two sons of former MLA Chevireddy Bhaskar Reddy, suspecting that their bank accounts were allegedly used as conduits for online money transfers.Investigators are examining alleged money trails routed through hawala channels and are likely to summon more individuals linked to the transactions in the coming days, ED sources said.According to the ED, Raj Reddy was the ‘principal architect’ and mastermind behind the alleged liquor cartel. Though officially serving as IT adviser to the Andhra Pradesh govt, the agency alleged that he exercised de facto control over the state liquor industry through political proximity.The ED alleged that Raj Reddy dismantled the automated liquor procurement system and replaced it with a discretionary manual process, enabling supply orders to be issued only to distilleries willing to pay kickbacks, while established brands were allegedly sidelined.The agency further alleged that around ₹3,200 crore in illegal gratification was collected from distilleries and laundered through shell companies and corporate entities, including Eshanvi Infra Projects and ED Entertainment. According to the ED, luxury real estate ventures such as ‘Wilderness Ranch’ and ‘PRYDE’ were acquired in the names of family members to conceal proceeds of crime.Poll cash movement under scannerThe ED further alleged that Chevireddy Bhaskar Reddy and his family played a central role in the physical movement and distribution of alleged proceeds of crime, particularly during the 2024 general and assembly elections.According to the agency, Bhaskar Reddy stored and distributed illicit cash for election-related activities and used personal security officers and associates to transport amounts ranging from ₹8 crore to ₹9 crore per trip from Hyderabad to various districts.The agency alleged that vehicles belonging to the Tirupati Urban Development Authority (TUDA), which was under Bhaskar Reddy’s control, were used for transporting cash. The ED claimed that vehicle logbooks were falsified to conceal movements, while toll data allegedly showed the vehicles crossing multiple toll plazas during the transfers.The ED also alleged that Chevireddy Mohit Reddy, as TUDA chairman, provided specific vehicles, including a white Toyota Fortuner, for transporting money linked to the liquor scam and coordinated the movement of funds along with his father.According to the agency, Bhaskar Reddy and Mohit Reddy also travelled to Zambia and other African nations in January 2025 to explore mining investments allegedly aimed at laundering and integrating illicit wealth abroad.
